HETEROGENEITY OF RETURNS TO BUSINESS R&D: WHAT DOES MAKE A DIFFERENCE?
HETEROGENEITY OF RETURNS TO BUSINESS R&D: WHAT DOES MAKE A DIFFERENCE?
| Author: | Petr Pleticha |
|---|---|
| Type: | IES Working Papers |
| Year: | 2019 |
| Number: | 32 |
| ISSN / ISBN: | |
| Published in: | IES Working Papers 32/2019 |
| Publishing place: | Prague |
| Keywords: | R&D returns, spillovers, Czechia |
| JEL codes: | O32, O33, O47, L14 |
| Suggested citation: | Pleticha P. (2019): "Heterogeneity of Returns to Business R&D: What Does Make a Difference?" IES Working Papers 32/2019. IES FSV. Charles University |
| Abstract: | Business R&D spending has been showed to exert a positive direct as well as indirect, spillover effects on value added. Nevertheless, heterogeneity of the returns to R&D has been seldom examined. Using detailed sectoral data from Czechia over the period 1995-2015, this study finds that privately funded business R&D has both direct and spillover effects, but that the publicly funded part of business R&D only leads to spillovers. The results further suggest that both upstream and downstream spillovers matter, regardless of the source of funding, and that the R&D returns were heavily affected by the economic crisis. Lastly, private R&D offers significant returns only after reaching a critical mass, while the effects of public R&D spending do not profess such non-linearity. The heterogeneity of returns to business R&D needs to be reflected in the design of innovation policy. |
| Download: | wp_2019_32_pleticha.pdf |
